Nasdaq Drops 2.15% as AI Debt Concerns, Oil Surge Hit Risk Appetite

U.S. stocks fell across the board as concerns over debt burdens at companies investing in artificial intelligence, along with rising crude prices, weighed on sentiment. Losses were most pronounced on the Nasdaq as selling concentrated in AI and semiconductor shares.

On Oct. 16 in New York, the Nasdaq Composite closed at 26,140.03, down 572.99 points, or 2.15%, from the previous session. The S&P 500 fell 84.62 points, or 1.09%, to 7,659.44. The Dow Jones Industrial Average slipped 175.28 points, or 0.34%, to 52,002.41.

Concerns over debt tied to AI infrastructure spending pressured sentiment toward technology stocks. The pressure intensified as geopolitical instability in the Middle East and Ukraine drove oil prices higher.

At ICE Futures Europe in London, December Brent crude rose 3.72% from the previous session to settle at $109.86 a barrel. It climbed above $110 intraday and posted its highest close since May 19.

On the New York Mercantile Exchange, November West Texas Intermediate crude settled up 3.51% at $101.41 a barrel. It extended gains for a seventh straight session and reached its highest level since Sept. 17.